China's ferrosilicon market recorded a modest recovery this week, supported by stronger steel mill tenders and improving futures performance. Spot prices increased slightly across major producing regions, while overall market activity became more active than in previous weeks. Although downstream buyers continue to purchase based on immediate production needs, market sentiment has clearly improved.

According to the latest market data, China's mainstream ferrosilicon prices are now as follows:

• 72% Ferrosilicon (Natural Lump): RMB 5,500–5,550/MT
• 75% Ferrosilicon (Natural Lump): RMB 5,850–5,950/MT

The slight price increase reflects stronger confidence among producers following recent steel mill procurement activities.

Steel Mill Tenders Continue to Support the Market

Major Chinese steel producers continued their ferrosilicon procurement this week, providing solid support for domestic prices.

HBIS Group's latest ferrosilicon tender was finalized at approximately RMB 5,950/MT, exceeding previous market expectations and reinforcing confidence across the supply chain.

Meanwhile, ferrosilicon futures also strengthened. On the morning of July 15, the Ferrosilicon 2609 Futures Contract traded at RMB 5,788/MT, up 0.49% from the previous trading session. Prices briefly climbed above the 5,800 level before easing slightly, indicating improving market sentiment.

Spot Market Becomes More Active

Spot quotations increased modestly in the major producing regions of Ningxia and Qinghai.

The mainstream price for 72% ferrosilicon is currently RMB 5,500–5,550/MT, while 75% ferrosilicon is quoted at RMB 5,850–5,950/MT, depending on the production region and specification.

Compared with previous weeks, suppliers are showing greater confidence in maintaining firm offers. Market inquiries have increased, although most downstream steel mills and foundries continue to purchase according to actual production requirements rather than building inventories aggressively.

Stable Production Keeps Supply Sufficient

Production across China's major ferrosilicon regions remains stable.

Healthy operating margins continue to support normal production schedules, while raw material costs—including semi-coke and mill scale—have remained relatively stable. Electricity prices have also shown little overall change, allowing manufacturers to maintain steady operating rates.

As a result, domestic supply remains sufficient, and no significant production disruptions have been reported.

Export Market Remains Stable

China's export market continues to perform steadily despite the modest increase in domestic prices.

Current indicative FOB quotations are:

• FOB Ferrosilicon 72%: USD 1,200–1,220/MT
• FOB Ferrosilicon 75%: USD 1,235–1,255/MT

Demand from India, Southeast Asia, the Middle East, and Europe remains stable. While overseas buyers remain cautious about price movements, China's reliable product quality, stable production capacity, and dependable logistics continue to make Chinese ferrosilicon highly competitive in the global market.

Short-Term Market Outlook

The short-term outlook for China's ferrosilicon market has improved.

Higher steel mill tender prices and firmer futures trading have strengthened market confidence, while spot prices have begun to recover gradually. Although downstream demand remains largely driven by immediate production needs, purchasing activity has become more active than in recent weeks.

Looking ahead, market participants will closely monitor upcoming steel mill tenders, futures market performance, production levels in major producing regions, and export demand.

If steel mills continue to increase procurement and export orders remain stable, China's ferrosilicon market is expected to maintain a stable-to-firm trend in the coming weeks. However, ample domestic supply is likely to limit any sharp price increases in the near term.

About LS Ferro Alloy

LS Ferro Alloy is a trusted Chinese manufacturer and global supplier of ferroalloys, serving customers in the steelmaking, foundry, welding, and metallurgical industries for more than 20 years. Our main products include Ferrosilicon, Silicon Metal, Calcium Silicon, FeSiMg Nodulizer, Inoculants, Ferrochrome, Ferrophosphorus, Silica Fume, and other high-quality alloy materials.

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